Market watch: Lack of triggers keeps market quiet

KSE’s benchmark 100-share index crawls up 14 points.

KARACHI: The stock market remained sluggish on Tuesday as a lack of triggers restricted investor participation.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.10 per cent or 13.84 points to end at the 13,656.04 point level.

The market is waiting for any triggers, be it US-Pak relationship or movement of the rupee against the dollar, said Topline Securities Equity Dealer Samar Iqbal.

“Overall it was a dull day as year-end close for mutual funds kept activity at minimal,” said another analyst. Trade volumes crawled upwards but were still at a dismal level of 58 million shares compared with Monday’s tally of 57 million shares.

The ordinance issued by the president to validate the actions – including the tax amnesty scheme to capital markets – of former prime minister Gilani was challenged in the Supreme Court on Tuesday, raising uncertainty over its implementation.

Oil stocks witnessed another dull session in terms of volumes but Oil and Gas Development Company and Pakistan Oilfields gained 0.8% & 0.4% respectively, while PPL slipped 0.9% despite expectations of better fiscal 2012 payouts.

Banking stocks witnessed a mixed sessions as National Bank of Pakistan, MCB Bank & United Bank witnessed mild pruning while Bank Alfalah closed in the positive over expectations of an interim cash dividend, according to analysts.

Foreign institutional investors were net sellers of Rs183 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

The cement sector witnessed recovery in terms of volumes as recent decline in prices have made valuation cheap on the upcoming financial year outlook.

Shares of 352 companies were traded on Tuesday. At the end of the day 105 stocks closed higher, 162 declined while 85 remained unchanged. The value of shares traded during the day was Rs2 billion.

DG Khan Cement was the volume leader with 7.23 million shares declining Re0.01 to finish at Rs39.17. It was followed by Hub Power Company with 3.90 million shares falling Rs0.03 to close at Rs39.17 and Pakistan Reinsurance with 3.68 million shares descending Rs0.09 to close at Rs17.65.

Published in The Express Tribune, June 27^th, 2012.